Pricing your token for fundraising rounds isn’t as simple as picking a number. You have to balance:
1. Your total valuation at public launch.
2. The price difference between seed, private, and public rounds.
3. How much funding you actually need.
4. Avoiding excessive control by early backers.
Example:
A project selling 5% of tokens at $1.50 each in a private round with a total supply of 1M tokens has a $1.5M valuation.
(1.50 × 50,000) ÷ (1,000,000 ÷ 100 × 5) = $1,500,000
But if the public round price is too high, the token becomes overvalued, leading to early sell-offs.
Too low, and early investors might dump at launch.
1. Your total valuation at public launch.
2. The price difference between seed, private, and public rounds.
3. How much funding you actually need.
4. Avoiding excessive control by early backers.
Example:
A project selling 5% of tokens at $1.50 each in a private round with a total supply of 1M tokens has a $1.5M valuation.
(1.50 × 50,000) ÷ (1,000,000 ÷ 100 × 5) = $1,500,000
But if the public round price is too high, the token becomes overvalued, leading to early sell-offs.
Too low, and early investors might dump at launch.
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Simplicity Group Alpha
Web3 marketing in a downturn – can you still win when the market isn't? Join us this Wednesday, March 12, at 3:00 PM UTC to discuss what marketing actually works today, with insights from those who’ve been through it. This space is a must for Web3 builders…
LIVE NOW: Join our spaces on how to market when the market isn’t marketing
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https://x.com/i/spaces/1OdJrDdPjrlKX
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SIMD-0228 is set to change Solana’s economic model, significantly reducing inflation by decreasing block rewards.
With 67.9% of votes in favor so far, it looks like it will pass, although half of the validators haven’t voted.
Stay tuned for our article next week going into great detail on the topic.
Source
With 67.9% of votes in favor so far, it looks like it will pass, although half of the validators haven’t voted.
Stay tuned for our article next week going into great detail on the topic.
Source
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Simplicity Group Alpha
SIMD-0228 is set to change Solana’s economic model, significantly reducing inflation by decreasing block rewards. With 67.9% of votes in favor so far, it looks like it will pass, although half of the validators haven’t voted. Stay tuned for our article next…
Solana’s Tokenomics Shift: SIMD-0228 Explained
Tldr: token issuance will change based on % of supply staked.
• <50% = more emissions
• >50% = less emissions
Read more details and our analysis:
https://x.com/SimplicityWeb3/status/1900131283570688116
Tldr: token issuance will change based on % of supply staked.
• <50% = more emissions
• >50% = less emissions
Read more details and our analysis:
https://x.com/SimplicityWeb3/status/1900131283570688116
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When we started Simplicity Group, our goal was to help founders navigate complex decisions. Lately, we’ve explored bonding curves, key to tokenomics design.
Linear, exponential, logarithmic, or sigmoid - bonding curves can get complex. As always, we’ve made them easy to understand:
https://x.com/SimplicityWeb3/status/1895147004117877245
Linear, exponential, logarithmic, or sigmoid - bonding curves can get complex. As always, we’ve made them easy to understand:
https://x.com/SimplicityWeb3/status/1895147004117877245
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A common mistake in crypto fundraising is treating tokenomics like an equity cap table.
Equity = ownership in a company, valued by its financials.
Tokens = units of value in an ecosystem, driven by utility and demand.
Read the full analysis in our research article:
https://www.simplicitygroup.xyz/blog/e-vs-t
Equity = ownership in a company, valued by its financials.
Tokens = units of value in an ecosystem, driven by utility and demand.
Read the full analysis in our research article:
https://www.simplicitygroup.xyz/blog/e-vs-t
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These projects have been deemed as some of the most outstanding tokenomics and incentive designs on Solana by Solana Compass users.
We analyzed their economies to determine what makes them stand out:
https://x.com/SimplicityWeb3/status/1901517608471363700
We analyzed their economies to determine what makes them stand out:
https://x.com/SimplicityWeb3/status/1901517608471363700
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Token pre-launch valuation is tricky. Market cap doesn’t exist yet, and hype can distort real value.
Best approach? Prioritize the quantifiable.
✅ How much will users save by holding the token?
✅ What fees, rewards, or perks does it provide?
✅ What’s the estimated number of users?
Bad approach? Overestimating the unquantifiable.
❌ Speculation
❌ Social hype
❌ Vague narratives
Too many tokens launch at inflated prices based on hype, only to crash when real utility doesn’t match expectations.
Read more
Best approach? Prioritize the quantifiable.
✅ How much will users save by holding the token?
✅ What fees, rewards, or perks does it provide?
✅ What’s the estimated number of users?
Bad approach? Overestimating the unquantifiable.
❌ Speculation
❌ Social hype
❌ Vague narratives
Too many tokens launch at inflated prices based on hype, only to crash when real utility doesn’t match expectations.
Read more
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ETH is at its lowest price since Nov 2023, down 32% since the Nov 2024 US election. Macro uncertainty, liquidity, and regulatory fears impact the macro market, but the fact that Ethereum Foundation is selling ETH whilst Ethereum itself is minting more tokens than burning, is also not helping.
Nonetheless, long-term conviction is built on fundamentals, not price action. Let them cook.
Nonetheless, long-term conviction is built on fundamentals, not price action. Let them cook.
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🤝 Pleasure to be working with AUM Protocol 🤝
AUM is a MetaWealth subsidiary, one of the best RWA protocols on Solana. It's a B2B product suite that attaches to RWA protocols and allows the holders of their asset tokens to use said tokens in TradFi and DeFi products, creating huge utility for a plethora of users.
Why we're bullish
The B2B product direction in our opinion is superb, with a clearly outlined GTM and existent PMF. The team has great experience in TradFi, crypto, and in this sector, and their ability to deliver is second to none.
Many RWA protocols offer nothing but liquidity to their users, but now they will get access to secure lending & borrowing, investment baskets, insurance, banking suite, and much more.
Pleasure to be helping and advising such a team.
AUM is a MetaWealth subsidiary, one of the best RWA protocols on Solana. It's a B2B product suite that attaches to RWA protocols and allows the holders of their asset tokens to use said tokens in TradFi and DeFi products, creating huge utility for a plethora of users.
Why we're bullish
The B2B product direction in our opinion is superb, with a clearly outlined GTM and existent PMF. The team has great experience in TradFi, crypto, and in this sector, and their ability to deliver is second to none.
Many RWA protocols offer nothing but liquidity to their users, but now they will get access to secure lending & borrowing, investment baskets, insurance, banking suite, and much more.
Pleasure to be helping and advising such a team.
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Traditional science can be slow, centralized, and expensive.
Bureaucratic funding, biased peer reviews, and paywalls limit access and stifle innovation.
In contrast, DeSci uses blockchain to make research open, transparent, and accessible - cutting out paywalls, slow funding, and centralized control.
Researchers can raise money through DAOs, securely share data, and tokenize discoveries for ownership and profit.
So, can DeSci change how science is funded and shared?
Our researchers break it down in the latest article:
https://x.com/SimplicityWeb3/status/1901952941595971985
Bureaucratic funding, biased peer reviews, and paywalls limit access and stifle innovation.
In contrast, DeSci uses blockchain to make research open, transparent, and accessible - cutting out paywalls, slow funding, and centralized control.
Researchers can raise money through DAOs, securely share data, and tokenize discoveries for ownership and profit.
So, can DeSci change how science is funded and shared?
Our researchers break it down in the latest article:
https://x.com/SimplicityWeb3/status/1901952941595971985
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If you can’t explain what you do in one sentence, you’ve already lost.
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One of our advisory clients, Autonom, got into Techstars - the best incubator in the world.
Autonom is Web3's first and only oracle for RWAs on-chain, unlocking perpetual protocols’ access to untapped markets like equities, commodities and indices.
In simpler terms:
• equities cannot be accurately priced on-chain because oracle infra wasn't designed for it;
• commodities have no perpetuals in TradFi or DeFi;
= Autonom fixes this.
Team is ex-API3 core team, ex-Wintermute, TradFi - simply put, ggs
They're opening a bridge/lightning round for early strategic backers, dm @Alex_Simplicity if you're interested.
Autonom is Web3's first and only oracle for RWAs on-chain, unlocking perpetual protocols’ access to untapped markets like equities, commodities and indices.
In simpler terms:
• equities cannot be accurately priced on-chain because oracle infra wasn't designed for it;
• commodities have no perpetuals in TradFi or DeFi;
= Autonom fixes this.
Team is ex-API3 core team, ex-Wintermute, TradFi - simply put, ggs
They're opening a bridge/lightning round for early strategic backers, dm @Alex_Simplicity if you're interested.
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How to create a token economy?
1. Map out the actors
2. Map out the protocol/company elements
3. Map out the flow of value between all elements
4. Assess where the demand and supply will stem from
5. Work out where the sinks and injections are
6. Estimate velocity
7. Calculate the balance
8. Work out where to implement fiscal and monetary policies
(Example economy designed by Simplicity Group)
1. Map out the actors
2. Map out the protocol/company elements
3. Map out the flow of value between all elements
4. Assess where the demand and supply will stem from
5. Work out where the sinks and injections are
6. Estimate velocity
7. Calculate the balance
8. Work out where to implement fiscal and monetary policies
(Example economy designed by Simplicity Group)
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ETH’s total supply keeps increasing while the price trends down. Whilst the great inverse correlation is not much more than correlation (i.e. there are other factors that are causing ETH price to decrease, such as the terrible market + FUD about the foundation selling), there is still some causation, in that there aren't enough burns.
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